DBS Group Holdings Ltd · SGX:D05

DBS — Q1 2005 Earnings Presentation

25 slides from DBS's earnings presentation, Apr 29, 2005

  1. Slide 1: Growth in core businesses offsets weaker non-interest income

    Growth in core businesses offsets weaker non-interest income April 29, 2005 DBS Group Holdings 1Q 2005 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com/investor Disclaimer: The information contained in this document is intended only for use during th

  2. Slide 2: First quarter net profit at $412 million

    First quarter net profit at $ 412 million ($ million) 1Q 1Q YoY % 4Q QoQ % 2005 2004 change 2004 change ‰ Net profit excluding 412 592 (30%) 426 (3%) goodwill amortization ‰ Net profit on GAAP 412 482 (15%) 316 30% basis* * FRS 103 accounting change for goodwill amortization not retroactively applie

  3. Slide 3: Nine consecutive quarters of loan growth; net interest income highest in ten quarters

    Nine consecutive quarters of loan growth; net interest income highest in ten quarters ‰ Customer loans* $ 71 billion 22% $ 13 billion ‰ Net interest income $ 664 million * Exclude DBS Thai Danu Bank 3

  4. Slide 4: Sustained growth in customer franchise across the region

    Sustained growth in customer franchise across the region Net profit ‰ Consumer, SME $ 233 million 18% Ö Consumer $ 150 million 25% Ö SME $ 83 million 6% Consumer, SME combined accounted for 57% of DBS’ total net profit for the quarter 4

  5. Slide 5: Strong asset quality, balance sheet supports DBS' growth

    Strong asset quality, balance sheet supports DBS’ growth ‰ Asset quality one of the best among Asian banks Ö NPL rate of 2.4% Ö Provision coverage of 90% ‰ Strong balance sheet Ö Moody’s Aa2 credit rating among highest of banks competing in Asia-Pacific Ö Tier 1 ratio: 10.9% Ö Overall CAR: 15.3% 5

  6. Slide 6: Delivering sustainable and progressively increasing dividends

    Delivering sustainable and progressively increasing dividends ‰ Instituted quarterly dividend programme ‰ First Quarter 2005 dividend set at 11 cents per share 6

  7. Slide 7: Well-positioned to achieve further growth, deliver higher returns to shareholders

    Well-positioned to achieve further growth, deliver higher returns to shareholders ‰ More balanced and diversified business mix ‰ Strengthened customer franchise ‰ Up-to-date risk management practices, technology and operations platform ‰ Continue to extend business model to new geographies, grow our

  8. Slide 8: Operating profits improve 16% on quarter from revenue growth and lower expenses

    Operating profits improve 16% on quarter from revenue growth and lower expenses (S$m) 1Q 1Q % 4Q % 2005 2004 change 2004 change Net interest income 664 634 5 636 4 Non-interest income 408 636 (36) 391 4 Operating income 1,072 1,270 (16) 1,027 4 Staff costs 265 257 3 259 2 Other operating expenses 24

  9. Slide 9: Key ratios generally unchanged on quarter

    Key ratios generally unchanged on quarter 1Q 4Q 1Q (%) 2005 2004 2004 Net interest margin 1.76 1.75 1.79 Non-interest income/total income 38 38 50 Cost/income 47 53 40 ROE 9.9 10.5 15.8 Loans/deposits 61 62 58 Loan + non-trading debt securities/ 81 82 78 deposits NPL ratio 2.4 2.5 4.6 9

  10. Slide 10: Net interest income highest in ten quarters, margins steady

    Net interest income highest in ten quarters, margins steady (S$m) Net interest margin (%) 2,645 2,566 2,375 1.99 1.78 1.79 1.79 1.79 1.83 1.75 1.76 634 651 645 636 664 2002 2003 2004 1Q 2Q 3Q 4Q 1Q 2004 2005 10

  11. Slide 11: Loans expand 14% on year to record

    Loans expand 14% on year to record (S$m) DTDB loans 71,060 2% 4% 3% 3,275 4% 2% 2,915 69,664 2,915 67,221 65,053 62,429 61,420 Dec 2003 Mar 2004 Jun 2004 Sep 2004 Dec 2004 Mar 2005 11

  12. Slide 12: Fee income from annuity businesses remains steady

    Fee income from annuity businesses remains steady Fee income (S$m) Dividend & rental Other income 1,883 b 1,840 Non-interest income / 1800 total income (%) 58 a 1,031 1500 1,422 50 44 48 41 1200 36 42 b 38 38 901 35a 39 b 900 814 87 105 636 600 60 281 409 b 447 408 391 852 747 13 252 254 300 548 244

  13. Slide 13: Wealth management sales improve, revenues rise 16% on quarter

    Wealth management sales improve, revenues rise 16% on quarter Structured deposits (S$m) 9,006 9,242 Bancassurance Unit trusts 7,227 5,908 429 2,766 2,545 1,732 2,093 2,065 1,526 1,838 200 27 1,157 2,905 964 1,685 327 41 41 1,578 1,006 34 691 834 868 374 2003 2004 1Q 2Q 3Q 4Q 1Q 2004 2005 Sales (all

  14. Slide 14: Revenues rebound on quarter, customer businesses resilient

    Revenues rebound on quarter, customer businesses resilient (S$m) 1Q 1Q 4Q Change Change 2005 2004 2004 Consumer Banking 414 384 30 401 13 Enterprise Banking 182 182 0 186 (4) Corporate and Investment Banking 174 176 (2) 162 12 Global Financial Markets 170 409 (239) 147 23 Central Treasury Unit 46 10

  15. Slide 15: Operating costs kept under control

    Operating costs kept under control (S$m) Cost/Income (%) 2,049 1,868 1,869 53 46 47 a 44 46 b 46 46 b 40 45 41 32 514 492 502 541 509 2002 2003 2004 1Q 2Q 3Q 4Q 1Q 2004 2005 Annualised cost / average assets (%) 1.22 1.17 1.22 1.22 1.14 1.20 1.27 1.14 Headcount c 12,035 12,144 11,454 12,173 10,838 11

  16. Slide 16: Hong Kong's net profit 27% lower on year

    Hong Kong’s net profit 27% lower on year (S$m) 1Q 1Q % 4Q % 2005 2004 change 2004 change Net interest income 200 219 (9) 205 (2) Non-interest income 99 139 (29) 124 (20) Operating income 299 358 (16) 329 (9) Operating expenses 151 142 6 158 (4) Op profit before provisions 148 216 (31) 171 (13) Provi

  17. Slide 17: Key Hong Kong ratios continue to support group

    Key Hong Kong ratios continue to support group 1Q 4Q 1Q (%) 2005 2004 2004 Net interest margin 1.92 1.96 2.31 Non-interest income/total income 33 38 39 Cost/income 51 48 40 ROA 1.06 1.11 1.56 Loans/deposits 75 75 73 17

  18. Slide 18: Regional revenues continue to grow at faster pace

    Regional revenues continue to grow at faster pace Amount (S$m) YoY 1Q 2004 1Q 2005 change (%) Revenues Region and rest of world a 60 85 42 Hong Kong 365 298 (18) Singapore 808 689 (15) Total 1,233 1,072 (13) Net profit b Region and rest of world a 32 13 (59) Hong Kong 168 124 (26) Singapore 376 275

  19. Slide 19: NPL rate edges down to 2.4%

    NPL rate edges down to 2.4% Substandard (S$m) Doubtful Loss 7500 NPL rate (%) 6.1 5.2 4.6 2.5 3.0 2.6 2.5 2.4 5000 4,224 3,780 3,359 2500 2,182 74% 1,919 1,934 1,919 1,928 75% 73% 71% 72% 70% 6% 71% 72% 5% 9% 6% 9% 9% 9% 9% 20% 22% 20% 19% 19% 21% 20% 19% 0 2002 2003 2004 Mar Jun Sep Dec Mar 2004 20

  20. Slide 20: Non-performing loans stable as additions offset recoveries and write-offs

    Non-performing loans stable as additions offset recoveries and write-offs (S$m) 1Q 2005 4Q 2004 1Q 2004 NPLs at start of period 1,919 1,934 3,780 New NPLs 185 325 150 Net recoveries of existing NPLs (135) (261) (396) Write-offs (41) (79) (175) NPLs at end of period 1,928 1,919 3,359 20

  21. Slide 21: Specific provision charges remain low

    Specific provision charges remain low (S$m) 1Q 2005 4Q 2004 1Q 2004 Add charges for New NPLs 51 74 52 Existing NPLs 33 41 61 85 115 113 Subtract charges for Upgrading 2 2 5 Settlements 34 63 73 Recoveries 6 13 6 42 79 84 Total SP charges 43 36 29 21

  22. Slide 22: Provision coverage improves to 90%

    Provision coverage improves to 90% (S$m) 5000 GP SP 4000 3000 2,500 2,387 2,271 2000 989 1,701 1,819 1,752 1,736 1,064 1,701 1,072 1,015 1,025 1,037 1,015 1,036 1000 1,511 1,323 1,199 686 794 715 686 700 0 2002 2003 2004 Mar Jun Sep Dec Mar 2004 2005 Coverage ratios (%) SP+GP / Unsec NPAs 121 124 18

  23. Slide 23: Tier-1 CAR trimmed as RWA expands in 1Q

    Tier-1 CAR trimmed as RWA expands in 1Q (%) 28 Tier-2 CAR Tier-1 CAR 24 20 15.8 15.6 15.8 15.5 15.1 14.5 15.4 15.3 16 5.2 4.5 4.0 3.6 4.5 4.4 4.6 4.1 12 8 10.3 11.3 10.4 11.6 11.8 11.3 10.9 10.5 4 0 2002 2003 2004 Mar Jun Sep Dec Mar 2004 2005 (S$bn) Tier-1 capital 8.4 9.6 11.8 10.2 11.2 11.5 11.8 1

  24. Slide 24: Quarterly dividend rate of 11 cents

    Quarterly dividend rate of 11 cents Final (Cents) Interim Quarterly 50 40 40 30 30 30 22 20 16 16 10 18 14 14 11 0 2002 2003 2004 1Q 2005 24

  25. Slide 25: Growth in core businesses offsets weaker non-interest income

    Growth in core businesses offsets weaker non-interest income April 29, 2005 DBS Group Holdings 1Q 2005 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com/investor Disclaimer: The information contained in this document is intended only for use during th

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